Shares of ARRIS International plc (NASDAQ:ARRS) recorded 0.39% gain during trading session on December 6th, 2018. The script traded as low as $30.8 and last traded at $30.98. 4.95 million shares changed exchanged hands during trading, a drop of -23.02% from the 30-day average session volume of 4.02M shares. The firm had previously closed at $30.86. The company has $173.33M outstanding shares, a price-to-earnings ratio of 94.45, price-to-earnings-growth ratio of 0.80 and a beta of 1.13. The company has a RSI of 74.58, ATR of 0.50 and a volatility of 0.59% this week. ARRS has a 52 week low price of $21.55 and a 52 week high price of $31.06.
Investors have identified the tech company ARRIS International plc as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 5.37B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
ARRIS International plc (ARRS) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For ARRS, the company has in raw cash 480.76 million on their books with 83.79 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 2.84 billion total, with 4.23 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
ARRS were able to record 0 as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 420.24 million. In cash movements, the company had a total of 0 as operating cash flow.
Potential earnings growth for ARRIS International plc (ARRS)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, ARRIS International plc recorded a total of 1.65 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -0.05% coming in sequential stages and their sales for the third quarter reducing by -0.05%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.19 billion trying to sell their products during the last quarter, with the result yielding a gross income of 465.19 million. This allows shareholders to hold on to 173.33M with the revenue now reading 260 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.28 cents a share).
Is the stock of ARRS attractive?
Having a look at the company’s valuation, the company is expected to record 2.55 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on ARRS sounds very interesting.
In related news, Director WOODLE DAVID A bought 1,000 shares of the company’s stock in a transaction that recorded on August 15th, 2018. The purchase was performed at an average price of 23.84, for a total value of 23,840. As the purchase deal closes, the Director WOODLE DAVID A now bought 1,000 shares of the company’s stock, valued at 24,302. Also, Director WILSON DEBORA J bought 4,000 shares of the company’s stock in a deal that was recorded on August 14th, 2018. The shares were bought at an average cost of 24.35 per share, with a total market value of 50,750. Following this completion of disposal, the CEO now holds 1,500 shares of the company’s stock, valued at 36,120. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.00%.
0 out of 10 analysts covering the stock have rated it a Buy, while 10 have maintained a Hold recommendation on ARRIS International plc stock. 0 analysts has assigned a Sell rating on the ARRS stock. The 12-month mean consensus price target for the company’s shares has been set at $30.56.